Correios approves R$20 billion loan for restructuring plan

by Marcelo Moreira

The Correios board of directors approved a loan of R$20 billion within the state-owned company’s restructuring plan. The operation aims to reinforce the company’s cash flow, which has already accumulated a loss of R$6 billion this year alone.

The Union will be the guarantor of the loan, and a presidential decree should be published in the coming days formalizing the guarantee. In this way, the National Treasury will assume the payments if the state-owned company is unable to honor the installments, which practically reduces the risk of loss for the financial institutions involved to zero.

The credit was presented by a consortium formed by five banks: Banco do Brasil, Citibank, BTG Pactual, ABC Brasil and Safra. The approved operation fully meets the amount requested by the company.

The restructuring plan announced on October 15th provides for measures such as voluntary dismissal programs and the sale of state-owned properties. The report sought out the banks mentioned, but none have responded so far.

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